Dangote Refinery pays off 70% of loans, balance only N2.7b
By Jeph Ajobaju, Chief Copy Editor
Central Bank of Nigeria (CBN) Governor Godwin Emefiele has confirmed the Dangote Group has paid back 70 per cent of loans obtained from the apex bank to build its refinery in Lagos.
Emiefele disclosed at the commissioning of the refinery the project was initially estimated to cost about $9 billion but it eventually gulped $18.5 billion.
According to him, the commercial loan component of the project was financed mainly by domestic banks and the balance by foreign banks.
He explained the CBN provided about N125 billion for domestic currency requirements and ensured the availability of foreign exchange (FX, forex) to pay for imported equipment.
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Loans paid before commissioning
“We have it on good authority that the Dangote Group has paid off some portion of these commercial loans even before this commissioning today,” Emefiele said, via reporting by Vanguard.
“Today, total loans outstanding have dropped from over $9 billion when this project started to N2.7 billion. This reflects the astute credit-worthiness and commercial capability of the group and its chairman, Alhaji Dangote.
“I must at this juncture appreciate all the participating local Nigerian banks, who did not only partner with the project through effective financing but were keenly aware of the importance of the project for our nation.
“They provided immense support and exceptional understanding, even when interest payments and principal repayment had fallen due.”
Emefiele expressed optimism that, with Dangote Refinery up and running, Nigeria will stop importing petroleum products, fertilizer, and petrochemicals and save more than $26 billion.